Belfast and Hull the most affordable places to live in the UK

Belfast and Hull are the most affordable places to live in the UK according to Adzuna.co.uk. The research shows that only 11% of homes in Chichester are within financial reach for first-time buyers on average local incomes, while Middlesbrough, Dudley and Wolverhampton are the most affordable rental markets in Britain.

Adzuna calculates the affordability of areas by looking at average salaries for the top 50 cities in the UK – this data is compared to property asking prices and typical mortgage multiples across the UK to produce an “Affordability Index” for house hunters.

The study unsurprisingly underlines the North-South divide with the most affordable cities for house hunters located almost exclusively in the North.

At an average of £124,438, sale prices in Hull, Middlesbrough and Bradford are 2.2 times the average local couples’ earnings. Not only is the average couple able to afford 9 out of 10 properties for sales in these areas, nearly all rental properties are within budget for those in full time employment.

Bargain hunters should head to cities such as Luton and Southend-on-Sea where homes are now 7% more affordable than this time last year. Further South, Portsmouth is the most affordable southern city – with over 68% of houses on the market within budget, a 2% rise since 2012. There is also good news for first-time buyers in Brighton, as East Sussex has become 9% more affordable for locals in the last 12 months.

London remains a tough market for home buyers despite the high wages paid in the city – 75% of homes on the market are out of reach for the average couple in London.

The rental market in the UK paints a far more attractive picture with the vast majority of major UK towns and cities over 30% more affordable than the for-sale market. Nearly 100% of properties up for rent in Middlesbrough are within budget, with over 40 towns and cities scoring over 90% affordability. The property market in Hull, on the other hand, is almost identical for renting and buying with 98% of homes affordable to working couples.

Choice of mortgages reaches five-year high

Mortgagehunters’ choice reached record levels last month with more products on offer than at any time since the housing market crash, according to the National Mortgage Index from Mortgage Advice Bureau. The number of mortgage products exceeded 10,000 for the first time in almost five years. July’s average of 10,262 meant that choice has improved 33% in the last year, 97% in the last three years and 198% since July 2009.

Using data from more than 500 brokers and 800 estate agents, the National Mortgage Index also shows that the average purchase mortgage rose for a fifth successive month. The typical homebuyer borrowed £159,391 in July, up by 6% since the start of the year.